Each day, it seems, the stock market moves closer to its February peak. After a late-winter plunge that erased roughly $7 trillion in household wealth, the S&P 500 index has recovered nearly all of those losses. Are investors in the market oblivious to the ongoing damage from COVID-19? What about the upheaval over the death … Continue reading Has the Market Gotten Ahead of Itself?
Posts
Ratio Christi: South Africa Meeting
On June 4th, I joined Simon Brace and Ratio Christi South Africa to discuss my latest book, Capitalism Versus Socialism: What Does the Bible Have to Say? Please feel free to click on the red button below to re-watch the event. View youtube stream The slides from the presentation are available for download below. Presentation … Continue reading Ratio Christi: South Africa Meeting
Sorting Through the Pain
What do Pier 1 Imports, JC Penney, Gold’s Gym, and Cinemax have in common? All are well-known businesses that have filed for bankruptcy recently—casualties of COVID-19. Not so well known are the family-owned restaurants down the street, the owners of the local gyms, and the Uber drivers. Are these canaries in the coal mine, only … Continue reading Sorting Through the Pain
Some Introductory Thoughts
Proponents of democratic socialism like to argue that democratic socialism is the purest form of democracy. Everybody gets treated the same. But that can be true only in the abstract. What does it mean in practice? Does it mean that everyone gets the same allocation of food, regardless of their physical size or dietary requirements? … Continue reading Some Introductory Thoughts
Faith and Economics
I have always believed that there is a God. I grew up in a family with strong Norwegian Lutheran roots on my mother’s side. My grandmother was a victim of polio and lost at least three children, but she had an infectious spirit that seemed to inspire everyone she met. I know that she prayed … Continue reading Faith and Economics
What Are We Learning About the Economic Decline?
Each week we learn about the new job losses caused by the COVID crisis. Through the first part of May, the number of people who had lost their jobs and had filed for unemployment insurance had accumulated to 36 million—22 percent of the labor force. Many others have faced cutbacks in hours worked. The job … Continue reading What Are We Learning About the Economic Decline?
Socializing Risk
Over recent decades, the United States has in small steps extended the socialization of risk. We have become more responsive to those experiencing losses that threaten their livelihood. This has taken the form of growing assistance to those hit by natural disasters—tornados, earthquakes, hurricanes, and floods. It has also taken the form of coverage of … Continue reading Socializing Risk
Why is the Federal Government the One to Pay for This?
Heating up is the issue of whether the next COVID-19 bill to be considered by Congress will include massive assistance from the federal to state and local governments, especially those most strapped. If enacted, this will involve the federal government borrowing even more in the credit market to be able to achieve the transfer. Why, … Continue reading Why is the Federal Government the One to Pay for This?
The Ideas Will Still Remain
With the suspension of his campaign, Sanders' days as a presidential candidate have ended. However, his economic proposals such as universal health care, free higher education, and a sharp boost to the minimum wage, will still be around. Some of his proposed policies may even work their way into the 2020 platform of the Democrat … Continue reading The Ideas Will Still Remain
Are We Drowning in Fed Liquidity?
The Federal Reserve—the Fed—is the only institution in our economy that is authorized to create money, essentially out of thin air. This can take the form of cash, those greenbacks in your wallet, or electronic credits to bank accounts. Since early March, the Fed has ramped up liquidity roughly $2-1/2 trillion—yes, trillion. This has been … Continue reading Are We Drowning in Fed Liquidity?
Thomas D. Simpson, PH.D. 